Which of the following is correct in respect of NPOs?

Receipts are shown on the debit side while Payments are shown on the credit side. Income is shown in the credit side while Expenses are shown on the debit side. Both of them are correct None of 1 and 2 is correct.

Both of them are correct

Receipt and Payment Account is a summary of the cash book. Its form is identical with that of simple cash book (without discount and bank columns) with debit and credit sides. Receipts are recorded on the debit side while payments are entered on the credit side whereas Income and expenditure a/c consider only the revenue receipts to be shown on the income side of Income and Expenditure Account. Some of these need to be adjusted by excluding the amounts relating to the preceding and the succeeding periods and including the amounts relating to the current year not yet received and Take the revenue expenses to the expenditure side of the Income and Expenditure Account with due adjustments as per the additional information provided relating to the amounts received in advance and those not yet received.